The timing of Crenshaw’s purchases and failure to disclose them raised suspicions of insider trading. Crenshaw made five stock purchases between March 25 and 27, 2020, a week after it was reported that Sen. Richard Burr had sold up to $1.72 million after private coronavirus briefings. It was also during the period when the Senate and House voted on the CARES Act.
Crenshaw purchased stocks in Southwest, Boeing, SPX, and Kinder Morgan, which were valued between $1,001 and $15,000, and in an S&P 500 index fund.
On March 12, when global markets crashed, Crenshaw purchased Amazon stocks between $1,001 and $15,000. Crenshaw did not disclose the transactions within 45 days and in his annual report when he initially submitted it in August, violating the Stock Act. He amended his records in December to reflect the purchases.
Before that, Crenshaw, elected in 2018, had never traded individual stocks in office.
How Did Crenshaw Violate the STOCK Act?
Crenshaw’s nondisclosure of purchasing stocks violates the Stop Trading on Congressional Knowledge (STOCK) Act of 2012, which requires members of Congress to inform the public when they engage in securities trades. The STOCK Act intends to deter federal elected officials from trading on inside knowledge by requiring Congress to post all transactions within 45 days.
Crenshaw’s nondisclosure came as many high-profile lawmakers got involved in an insider trading scandal.
Senators Dianne Feinstein, John Hoeven, David Perdue, and Jim Inhofe were probed for insider trading, triggering investigations by the Justice Department, the Senate Ethics Committee, and the Securities and Exchange Commission. They were not charged criminally. Crenshaw, who hadn’t disclosed his purchases, was not mentioned in media reports.
The Campaign Legal Center revealed that between Feb. 2 and April 8, 2020, a dozen senators made 127 transactions and 37 House members transacted at least 1,358 times.
How Did the Timing of Crenshaw’s Stock Purchases Arouse Suspicion of Insider Trading?
At the time of Crenshaw’s purchases, Congress was putting together the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act, a $2.2 trillion relief package bill. On March 25, the day when Crenshaw supported the bill, he purchased stocks in SPX and the S&P 500 fund. On March 26, when the CARES bill passed the House, Crenshaw bought the Southwest and Kinder Morgan shares. The bill was signed into law by Trump on March 27, when Crenshaw acquired his stake in Boeing.
Crenshaw’s purchases have all shown returns, with Boeing, Amazon, and Southwest Airlines posting the biggest yields. On March 12, Amazon surged from about $1,820 a share to $2,979, and Southwest Airlines jumped from around $41 to over $60.
Crenshaw doesn’t own many individual stocks. Aside from those he purchased in March 2020, he only holds shares in Starbucks, Alphabet (Google’s parent company), and a small stake in Schlumberger ( a global oilfield services provider).
What was Crenshaw’s Defense Against Insider Trading Allegations?
Crenshaw told Newsweek he only has about $20,000 in the stock market, yet he’s “been dragged through the mud” as if he is involved in insider trading.
Based on the stock transactions ranging from $1,001 to $15,000 that Congress reported, it was assessed that Crenshaw could have bought up to $120,000 in stock during that time, according to the Houston Chronicle. But Crenshaw’s spokesman said the amount of stock was only $13,000. Crenshaw added that his highest transaction was only around $3,000.
Speculative tracker Quiver Quantitative estimated Cranshaw’s trade volume to be $313,000, not $20,000 as the Texas lawmaker claimed.
Earlier, Justin Discigil, Crenshaw’s communications director, responded to a Daily Beast report on the Republican’s involvement in insider trading, saying that the news outfit referenced financial disclosures that use a range to report stock purchases, and it chose the upper end of the range to come up with $90,000.
Discigil insisted that the transactions were valued “around $30,000 at most,” emphasizing that the purchases were not “unethical or related to official business.”
When Crenshaw appeared on Jesse Watters Primetime’s list of politicians who had been most successful with investments, his lawyers sent a letter to Fox News threatening them with defamation, according to Chron. He explained that Jesse Watters’s insinuation of insider trading is false because he has little insider information about stock trading.
On his failure to timely disclose his stock trading transaction at the start of the COVID-19 pandemic, Crenshaw said it was unintentional.
Why is there a Conflict of Interest when Lawmakers Like Crenshaw Trade in Stocks?
According to Kedric Payne, senior director of ethics at the Campaign Legal Center, lawmakers shouldn’t give the appearance that they have a financial interest in matters involving their work.
He explained that it’s impossible not to appear to have a conflict of interest if they make decisions affecting an industry while benefiting financially.
Even if lawmakers rely on financial advisors for trading decisions, the perception of having conflicts of interest remains because the public is unaware if they used their position in making the trades.
The situation became more controversial when Crenshaw made the purchases because it occurred during a crisis like the pandemic.
According to Ben Edwards, a securities law expert and professor at the University of Las Vegas Nevada School of Law, Congress should not be actively involved in stock trading during a crisis. He explained that such a situation shows that when the market crashes, lawmakers are concerned about their welfare and are using the volatility for personal gain.
Edwards insists that a Texas elected official’s first job in a crisis is to keep Texans safe, but Crenshaw’s focus was on his portfolio.
Texas Democratic Party Chairman Gilberto Hinojosa slammed Crenshaw for his purchases, saying that his first job in a crisis is to keep Texans safe instead of thinking about his portfolio.
What is the Aftermath of Crenshaw’s Stock Trading Controversy?
A proposal now prohibits lawmakers and their spouses from trading on the stock market.
On May 2, 2025, U.S. Representative Rob Bresnahan, Jr. introduced the Transparency in Representation through the Uniform Stock Trading Ban (TRUST) Act, legislation to bar Members of Congress and their spouses from purchasing or selling stocks while in office.
Bresnahan emphasized that the public should never doubt elected officials on whether they are serving the public or are more concerned about their portfolios. He added that the TRUST Act would restore the integrity of the government, allow new levels of transparency, and ensure that Washington works for the people.”
When asked by Michael Moynihan and Batya Ungar-Sargonon on The Free Press podcast about a proposed stock trading prohibition against lawmakers in November 2024, Crenshaw said it is number 1,000 on his list of things to care about because he barely has anything in the market.
He sarcastically added that it is a great idea not to make them trade stocks, to cut their paychecks, and to make Congress exclusively for millionaires.
Crenshaw, who has an estimated net worth of $2,459,016 according to Daily Mail, citing findings by OpenSecrets.org, receives an annual salary of $174,000 as a member of Congress, plus funding for travel and housing.
